A new study suggests that only eight in 10 charities with an income of £500,000 or more report their income and expenditure analyses accurately.
The news follows a report published by the Charity Commission ahead of the 2017 annual return deadline.
The report, which sheds a light on the financial reporting habits of small charities, shows that while smaller charities fail to provide accurate information most frequently, one in 10 charities with incomes between £25,000 and £500,000 per annum still struggle to report the right data.
Likewise, while 95 per cent of charities with an income of over £500,000 per annum report accurate balance sheet figures, just eight in 10 report accurate income and expenditure analyses.
These figures come shortly after the Government decided to increase the audit threshold from £500,000 to £1 million of income.
The Charity Commission found that in many of the inaccurate cases, charities had tasked someone with insufficient knowledge of the organisation’s accounts with completing their annual return figures, signifying the importance of taking on an experienced financial controller or outsourcing the work to an external accountancy practice.
Commenting on the research, Nigel Davies, Head of Accountancy Services at the Charity Commission, said: “Not providing accurate financial information is misleading and can have an impact on public trust.
“People want to know how charities spend their money; so this result is clearly not good enough.”